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24 January 2015

Coalgate Scam CBI registers case against Hindalco Birla CompanyCBI has registered a fresh case in the coal block allocation scam against Indal which is now known as Hindalco, Aditya Birla Group Company in connection with the allocation of Talabira-I coal block, twenty years ago.

Talabira-I coal block in IB valley in Odisha, with nearly 22.55 million tons of geological reserves, was allotted to Indal on February 25, 1994.

Coal block was given in 1994 to a company named Indal which was later acquired by Hindalco, which is a part of the $40 billion dollar Aditya Birla group.

Hindalco produces aluminum.

As per media reported that Hindalco illegally mined more than what it was licensed to fuel the power plant it ran.Coal was used by the company in an unauthorized manner in the existing power plant whereas the allocation was done for expanding the capacity of new power plantMining was started by the company without obtaining the mandatory permission.

CBI has registered a case against the Birla Group and unnamed government officials.

Allegation is that government officers knew about the illegal operations But they did not took any action against unauthorized use despite their knowledge.